{"id":167153,"date":"2024-06-07T12:42:07","date_gmt":"2024-06-07T12:42:07","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=167153"},"modified":"2024-06-07T12:42:10","modified_gmt":"2024-06-07T12:42:10","slug":"jpmorgan-predicts-lower-demand-for-ethereum-etfs-compared-to-bitcoin","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/jpmorgan-predicts-lower-demand-for-ethereum-etfs-compared-to-bitcoin\/","title":{"rendered":"JPMorgan Predicts Lower Demand for Ethereum ETFs Compared to Bitcoin"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">JPMorgan\u2019s Analysis<\/span><\/strong><span data-preserver-spaces=\"true\">: Ethereum ETFs in the U.S. may see a lukewarm response compared to Bitcoin ETFs, which have drawn $15.3 billion. The lack of staking rewards and Ethereum\u2019s smaller market value could limit excitement.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Market Dynamics<\/span><\/strong><span data-preserver-spaces=\"true\">: The SEC\u2019s openness to Ethereum ETFs brings hope despite Ethereum\u2019s slower price rise compared to Bitcoin. JPMorgan predicts $1-3 billion inflows into Ethereum ETFs, while others remain bullish, expecting up to $4 billion.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Future Outlook<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">: Bitcoin ETFs initially caused a price dip, followed by a rebound due to high demand. Similar patterns could occur with Ethereum ETFs, affecting Ether\u2019s price, with Ethereum\u2019s all-time high of $4,866 as a potential retest target.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The recent approval of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/what-is-ethereum\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Ethereum<\/span><\/a><span data-preserver-spaces=\"true\"> ETFs in the United States has sparked a debate among analysts.<\/span><\/strong><span data-preserver-spaces=\"true\"> While these funds are poised to offer investors a new way to gain exposure to Ether, JPMorgan strategists <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-06-06\/doubts-on-us-ether-eth-etf-demand-pose-test-for-second-largest-token\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">forecast <\/span><\/a><span data-preserver-spaces=\"true\">a cooler reception <\/span><span data-preserver-spaces=\"true\">than<\/span><span data-preserver-spaces=\"true\"> their Bitcoin counterparts.<\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Bitcoin ETFs have attracted a staggering $15.3 billion this year, <\/span><\/strong><span data-preserver-spaces=\"true\">creating a stark contrast with the anticipation surrounding Ethereum ETFs. The captivating narrative of Bitcoin being the &#8220;digital gold&#8221; has successfully enticed investors, a storyline that Ethereum has yet to replicate.<\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Moreover, the absence of staking rewards in the ETF structure, <\/span><\/strong><span data-preserver-spaces=\"true\">which are<\/span><span data-preserver-spaces=\"true\"> available to direct holders of Ether, <\/span><strong><span data-preserver-spaces=\"true\">may dampen appeal. <\/span><\/strong><span data-preserver-spaces=\"true\">The CEO of BTC Markets Pty, <\/span><strong><span data-preserver-spaces=\"true\">Caroline Bowler,<\/span><\/strong><span data-preserver-spaces=\"true\"> points out that Ethereum\u2019s market value, at less than a third of Bitcoin\u2019s $1.4 trillion, <\/span><strong><span data-preserver-spaces=\"true\">suggests that Ethereum ETFs might not stir the same <\/span><span data-preserver-spaces=\"true\">level of<\/span><span data-preserver-spaces=\"true\"> excitement.<\/span><\/strong><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Regulatory Shifts and Market Dynamics<\/span><\/h2>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite the skepticism, <\/span><strong><span data-preserver-spaces=\"true\">the SEC&#8217;s recent willingness to consider Ethereum ETFs<\/span><\/strong><span data-preserver-spaces=\"true\">, after approving Bitcoin funds, <\/span><strong><span data-preserver-spaces=\"true\">has brought hope to the market.<\/span><\/strong><span data-preserver-spaces=\"true\"> Over the last year, Ethereum&#8217;s price has surged by 109%, although it still lags behind Bitcoin&#8217;s impressive 169% rise.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">JPMorgan&#8217;s <\/span><strong><span data-preserver-spaces=\"true\">Nikolaos Panigirtzoglou forecasts a conservative $1 billion to $3 billion<\/span><\/strong><span data-preserver-spaces=\"true\"> inflow into Ethereum ETFs this year. On the other hand, Bloomberg Intelligence&#8217;s Eric Balchunas believes Ethereum products might find it challenging to capture more than 20% of Bitcoin ETF assets totaling $62.5 billion.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">The Bullish Case for Ethereum<\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-167167\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/06\/Ethereum-2.jpg\" alt=\"JPMorgan Predicts Lower Demand for Ethereum ETFs Compared to Bitcoin\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/06\/Ethereum-2.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/06\/Ethereum-2-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/06\/Ethereum-2-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite the cautious stance of some, others remain bullish on Ethereum\u2019s prospects. <\/span><strong><span data-preserver-spaces=\"true\">Vetle Lunde from K33 Research anticipates a robust $4 billion <\/span><span data-preserver-spaces=\"true\">in<\/span><span data-preserver-spaces=\"true\"> net inflows<\/span><\/strong><span data-preserver-spaces=\"true\"> for Ethereum ETFs in the first five months, potentially leading to a price surge.<\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">VanEck,<\/span><\/strong><span data-preserver-spaces=\"true\"> an investment management firm, <\/span><strong><span data-preserver-spaces=\"true\">is particularly optimistic about Ethereum\u2019s potential<\/span><\/strong><span data-preserver-spaces=\"true\">, citing the blockchain\u2019s widespread use in crypto financial services. Matthew Sigel, VanEck\u2019s Head of Digital-Asset Research, believes that investors will eventually recognize the Ethereum ecosystem\u2019s capacity for innovation.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Market Impact and Future Outlook<\/span><\/h2>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The introduction of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/bitcoin-etf\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bitcoin <\/span><\/a><span data-preserver-spaces=\"true\">ETFs<\/span><\/strong><span data-preserver-spaces=\"true\"> earlier this year initially <\/span><strong><span data-preserver-spaces=\"true\">led to a dip in Bitcoin\u2019s price<\/span><\/strong><span data-preserver-spaces=\"true\">, but the<\/span><span data-preserver-spaces=\"true\"> strong demand quickly reversed the trend. Grayscale\u2019s plans to convert its Ethereum holdings into an ETF could exert similar pressures on Ether\u2019s price, though the long-term impact remains uncertain.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">At the time of writing, <\/span><strong><span data-preserver-spaces=\"true\">Ethereum trades at $3,835, with Bitcoin nearing its record high of $73,750.<\/span><\/strong><span data-preserver-spaces=\"true\"> Ethereum\u2019s all-time high of <\/span><strong><span data-preserver-spaces=\"true\">$4,866<\/span><\/strong><span data-preserver-spaces=\"true\"> remains a target for the market to retest as the cryptocurrency landscape <\/span><span data-preserver-spaces=\"true\">matures<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR JPMorgan\u2019s Analysis: Ethereum ETFs in the U.S. may see a lukewarm response compared to Bitcoin ETFs, which have drawn $15.3 billion. The lack of staking rewards and Ethereum\u2019s smaller market value could limit excitement. Market Dynamics: The SEC\u2019s openness to Ethereum ETFs brings hope despite Ethereum\u2019s slower price rise compared to Bitcoin. JPMorgan predicts &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"JPMorgan Predicts Lower Demand for Ethereum ETFs Compared to Bitcoin\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/jpmorgan-predicts-lower-demand-for-ethereum-etfs-compared-to-bitcoin\/#more-167153\" aria-label=\"More on JPMorgan Predicts Lower Demand for Ethereum ETFs Compared to Bitcoin\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":167168,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73,102,84,74],"tags":[5536,4924,4679,4736],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/167153"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=167153"}],"version-history":[{"count":1,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/167153\/revisions"}],"predecessor-version":[{"id":167169,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/167153\/revisions\/167169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/167168"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=167153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=167153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=167153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}